Jeet B Bhayani (SEBI RA)
8 Oct • 8:22 PM · SEBI-Registered Analyst
2W Retail Up 33% & MHCV Sales Jump 50% YoY
According to a report by Emkay, India’s two-wheeler (2W) and commercial vehicle (CV) segments are projected to outperform passenger vehicles (PVs) in FY27. This outperformance is driven by robust demand trajectories and superior pricing flexibility to absorb rising commodity costs, alongside a constrained pipeline of new PV launches. Retail momentum across the broader auto sector (excluding tractors) remains strong, highlighted by a 33% year-on-year surge in 2W retail sales—accelerating from 22% in H2 FY26, 29% in July, and 21% in August 2026. Medium and heavy commercial vehicle (MHCV) sales also exhibited sharp acceleration with a 50% year-on-year expansion, up from around 30% in prior months. Domestic PV sales held firm across OEMs, anchored by Maruti Suzuki India Limited's 30% year-on-year growth.
In contrast, tractor sales contracted across major manufacturers, with Escorts and Mahindra & Mahindra reporting year-on-year declines of approximately 17% and 21%, respectively. While overall vehicle volumes remained healthy, year-on-year growth rates were moderated by calendar shifts, as Diwali fell in November 2026 compared to October 2025. Furthermore, comparisons faced a high base effect from September 2025, when deferred purchases materialized following GST rate revisions. Given these dynamics, the report favors 2W and CV original equipment manufacturers over passenger vehicle makers heading into FY27.
